Wyndham Worldwide Corporation, together with its subsidiaries, provides various hospitality products and services to individual consumers and business customers in the United States and internationally.

Wyndham Worldwide Corporation Employee Savings Plan  offers 51 funds to its employees. These funds enable participants to gain exposure to 5 major assets: US Equity, Foreign Equity, Emerging Market Equity, REITs, Fixed Income.

 

Asset Class Ticker Name
Small Growth AASOX Alger Small Cap Growth Portfolio I-2
LARGE GROWTH PCARX Allianz CCM Capital Appreciation R
Foreign Large Blend RERCX American Funds EuroPacific Gr R3
LARGE GROWTH RGAFX American Funds Growth Fund of Amer R5
LARGE GROWTH RGACX American Funds Growth Fund of Amer R3
MID-CAP VALUE CMVRX Columbia Mid Cap Value R
LARGE BLEND NYVRX Davis NY Venture R
LARGE BLEND NYVTX Davis NY Venture A
REAL ESTATE RRRSX DWS RREEF Real Estate Securities R
Target Date 2000-2010 FACFX Fidelity Advisor Freedom 2010 A
Target Date 2011-2015 FFVAX Fidelity Advisor Freedom 2015 A
Target Date 2016-2020 FDAFX Fidelity Advisor Freedom 2020 A
Target Date 2021-2025 FATWX Fidelity Advisor Freedom 2025 A
Target Date 2026-2030 FAFEX Fidelity Advisor Freedom 2030 A
Target Date 2031-2035 FATHX Fidelity Advisor Freedom 2035 A
Target Date 2036-2040 FAFFX Fidelity Advisor Freedom 2040 A
Target Date 2041-2045 FFFZX Fidelity Advisor Freedom 2045 A
Target Date 2050+ FFFLX Fidelity Advisor Freedom 2050 A
MID-CAP BLEND FLSTX Fidelity Advisor Leveraged Co Stk T
Mid-Cap Growth FMCAX Fidelity Advisor Mid Cap T
Small Growth EMGRX First American Small Cap Select A
Foreign Large Blend HAINX Harbor International Instl
Mid-Cap Growth HAMGX Harbor Mid Cap Growth Instl
SMALL BLEND HASCX Harbor Small Cap Value Instl
Multisector Bond LBNYX Lord Abbett Bond-Debenture I
MID-CAP BLEND LVOAX Lord Abbett Value Opportunities A
LARGE GROWTH MFOCX Marsico Focus
LARGE BLEND MXAPX Maxim Aggressive Profile II
Intermediate-Term Bond MXBIX Maxim Bond Index
Conservative Allocation MXCPX Maxim Conservative Profile II
SMALL BLEND MXISX Maxim Index 600 Portfolio
Multisector Bond LSBDX Loomis Sayles Bond Instl
Moderate Allocation MXMPX Maxim Moderate Profile II
LARGE BLEND MXVIX Maxim S&P 500 Index Portfolio
LARGE VALUE PRFDX T. Rowe Price Equity Income
Foreign Large Value MINHX MFS International Value R4
Mid-Cap Growth OTCJX MFS Mid-Cap Growth R4
Moderate Allocation OAKBX Oakmark Equity & Income I
LARGE GROWTH OPTFX Oppenheimer Capital Appreciation A
WORLD STOCK OPPAX Oppenheimer Global A
Intermediate-Term Bond PTRAX PIMCO Total Return Admin
Intermediate-Term Bond PTTRX PIMCO Total Return Instl
MID-CAP VALUE PCMRX Pioneer Mid-Cap Value R
Foreign Small/Mid Value PICRX Putnam International Capital Opp R
Small Growth SSCTX RidgeWorth Small Cap Growth Stock I
LARGE VALUE ACSRX Van Kampen Comstock R
DIVERSIFIED EMERGING MKTS HLEMX Harding Loevner Emerging Markets
unknown unknown unknown
unknown unknown unknown
Foreign Large Growth OIGAX Oppenheimer International Growth A
ROOT CASH CASH

 

Asset Class Number of funds
Balanced Fund 12
REITs 1
Fixed Income 5
Commodity 0
Sector Fund 0
Foreign Equity 6
Emerging Market Equity 1
US Equity 23
Other 3
Total 51

As of Feb 24, 2012, this plan investment choice is rated as above average based on MyPlanIQ Plan Rating methodology that was designed to measure how effective a plan’s available investment funds are . It has the following detailed ratings:

Diversification — Rated as above average (83%)
Fund Quality — Rated as below average (29%)
Portfolio Building — Rated as great (91%)
Overall Rating: above average (70%)

The plan is rated above average even though its fund quality is rated low. The high rating is attributed to the high portfolio building rating (91%). On the fixed income side, good funds such as PIMCO total return (PTRAX or PTTRX) and Loomis Sayles Bond Instl (LSBDX) are offered. It also has several solid balanced funds. The problem with this plan is that it has too many duplicate U.S. equity funds (totally 23) and some of them have dual class offerings.

MyPlanIQ offers two asset allocation strategies: strategic and tactical asset allocation strategies (SAA and TAA for participants in Wyndham Worldwide Corporation Employee Savings Plan).

Strategic Asset Allocation is based on well known modern portfolio theory and its key features include: diversification, proper fund selection and periodically re-balancing.

Tactical Asset Allocation works on a diversified array of assets provided by funds in a plan and adjusts asset mixes based on market conditions such as asset price momentum utilized by TAA.

The chart and table below show the historical performance of moderate model portfolios employing strategic and tactical asset allocation strategies. For comparison purpose, we also include the moderate model portfolios of a typical 5 asset SIB (Simpler Is Better) plan . This SIB plan has the following candidate index funds and their ETFs equivalent:

US Equity: SPY or VTI
Foreign Equity: EFA or VEU
REITs: IYR or VNQ or ICF
Emerging Market Equity: EEM or VWO
Fixed Income: AGG or BND
Performance chart (as of Feb 24, 2012)

Performance table (as of Feb 24, 2012)

Currently Real Estate, US Equity and Emerging Market are doing well. These asset classes are available to Wyndham Worldwide Corporation Employee Savings Plan participants.

Wyndham Worldwide Corporation Employee Savings Plan offers plenty of choices for its participants to construct sound asset allocation portfolios. The tactical asset allocation portfolio outperformed the five core asset benchmark by a big margin in the last 3 and 5 years. However, the strategic asset allocation portfolio lagged its five core benchmark. This indicates an uneven plan.

Disclosure:

MyPlanIQ does not have any business relationship with the company or companies mentioned in this article. It does not set up their retirement plans. The performance data of portfolios mentioned above are obtained through historical simulation and are hypothetical.